CPC1232

DOT NPRM helps bump up freight car builder stocks

The U.S. Department of Transportation’s Notice of Proposed Rulemaking on DOT 111 tank cars for crude oil and HHFTs (High-Hazard Flammable Trains), specifically the NPRM’s proposal for phasing out older, pre-CPC-1232 tank cars, could worsen the crude oil tank car shortage, the Wall Street Journal reported on Aug. 13, 2014. Following the WSJ’s report, the stock prices of three tank car builders—Trinity, The Greenbrier Companies, and American Railcar Industries—increased by nearly 3% each.

DOT crude oil NPRM: Will cooler heads prevail?

A recent call-in forum on crude by rail conducted by Cowen and Company Managing Director and Railway Age Contributing Editor Jason H. Seidl “helped affirm our view that the final version of the DOT’s safety rules may include some changes to the ones proposed on July 23.”

Tank Car of the Future among more Greenbrier railcar contracts

Not including orders for 7,000 new railcars worth $700 million announced May 21, 2014, Greenbrier has been awarded contracts for 7,700 cars from multiple buyers valued at more than $960 million. Among the orders are 3,500 Tank Cars of the Future from multiple customers in the U.S. and Canada, “the first awards in the rail industry for a dramatically improved tank car for transporting flammables,” Greenbrier said.

Transport Canada toughens CBR safety regs

Trains carrying 20 cars or more of crude oil or ethanol must not exceed 50 mph under a new directive issued by Transport Canada on Wednesday, April 23, 2014, and that limit may be lowered for some locations after specific risk assessments for particular urban populations and sensitive assets such as water sources.